Tariff War Thaws? Trump Hints at Slashing US Tariffs on Chinese Goods by 80% Ahead of Key Talks

The Trump administration announced on Tuesday that Treasury Secretary Scott Bessant and US Trade Representative Jamieson Greer will meet their counterparts in Geneva. This will be the biggest dialogue between the two countries after the trade war. Earlier, Trump has talked about reducing the tariff imposed on China to 80 percent.

For the first time since the trade war broke out between the US and China, US President Donald Trump has put forward a new proposal. He has talked about reducing the tariff imposed on China to 80 percent. Trump has made this proposal when US and Chinese officials are about to hold a high-level dialogue in Geneva, Switzerland.

The Trump administration announced on Tuesday that Treasury Secretary Scott Bessant and US Trade Representative Jamieson Greer would meet their counterparts in Geneva. This will be the biggest dialogue between the two countries after the trade war.

What has happened so far in the ongoing tariff war between the US and China?

After the US announced to impose retaliatory tariffs on its trading partners on April 2, 2025, its trade war with China reached a new level. Both countries are announcing a new hefty tariff on each other every day. Earlier, the Trump administration had also exempted some electronic goods from tariffs. During that time, China had appealed to the US to completely eliminate retaliatory tariffs on all electronic goods. China has announced a 125 percent tariff on imports from the US. After this, the US imposed a 145% tariff on Chinese products.

China's exports increased

The US tariffs do not seem to have any effect on China. China's exports have increased by 8 percent in April compared to last year. However, China's exports to the US have declined by 20 percent. It is believed that China's exports to the US may decline further in the coming months due to the tariffs.

It is worth noting that the US has a trade deficit of more than $20 billion with China. It was around $27 billion a year ago. According to the data, China's exports to the US in the first four months of this year have decreased by 2.5 percent compared to the same period last year. Also, China's imports from the US have also decreased by 4.7 percent.